Correlation Between Korea Information and Atec
Can any of the company-specific risk be diversified away by investing in both Korea Information and Atec at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Korea Information and Atec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Communications and Atec Co, you can compare the effects of market volatilities on Korea Information and Atec and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Korea Information with a short position of Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Atec.
Diversification Opportunities for Korea Information and Atec
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and Atec is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Communicatio and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec and Korea Information is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Korea Information Communications are associated (or correlated) with Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Korea Information i.e., Korea Information and Atec go up and down completely randomly.
Pair Corralation between Korea Information and Atec
Assuming the 90 days trading horizon Korea Information Communications is expected to under-perform the Atec. But the stock apears to be less risky and, when comparing its historical volatility, Korea Information Communications is 8.97 times less risky than Atec. The stock trades about -0.02 of its potential returns per unit of risk. The Atec Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,655,000 in Atec Co on September 15, 2024 and sell it today you would earn a total of 2,060,000 from holding Atec Co or generate 124.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Communicatio vs. Atec Co
Performance |
| Timeline |
| Korea Information |
| Atec |
Korea Information and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Atec
The main advantage of trading using opposite Korea Information and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information position performs unexpectedly, Atec can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Atec will offset losses from the drop in Atec's long position.| Korea Information vs. Samick Musical Instruments | Korea Information vs. Samlip General Foods | Korea Information vs. Dongbang Transport Logistics | Korea Information vs. Heungkuk Metaltech CoLtd |
| Atec vs. Cube Entertainment | Atec vs. Dreamus Company | Atec vs. LG Energy Solution | Atec vs. Dongwon System |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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